Carlton's Industry List Blog

Why This Raw Material Is A Positive Growth Indicator for Manufacturers

A good way to predict what is in store for several Missouri manufacturers is to keep your eyes on the raw material titanium dioxide. Why? Because it is directly connected to pigments. Any manufacturing process that involves paint coatings is directly affected by the outlook of this key raw product.

Nothing can happen in manufacturing without a good supply of of titanium dioxide. Raw material suppliers base their production on the outlook of manufacturing itself, which means they are doing their homework on the economic outlook for the manufacturing industry itself.

As we speak, the prognosticators are talking about titanium dioxide becoming a growth industry between the present time and the year 2024. It feeds into the market for paint coatings, paper & pulp, textiles, plastics, rubber, cosmetics, printing inks, catalysts, welding electrodes, food colorants, water treatment agents, and pharmaceutical products.

There’s also a lot of talk going on about the rise in use of polycarbonate plastics in the automobile industry due to demand for lighter weight vehicles, and also products relating to building construction. Titanium dioxide provides the needed protection for these materials which have a low scratch resistance. A rise in plastics plastics production will require an increase in the supply of these protective coatings.

Most of my research points to the use of titanium dioxide in paint coatings first and foremost at 58%, with polycarbonates coming in second. Take special note to the fact that production of water-based paints is on the rise, and this raw material plays a big role in their use and development.

It’s pretty safe to say that titanium dioxide production is a key forecasting agent for market growth, and is definitely something we need to keep our eyes on as a consideration for how much production the Missouri market will be able to soak up for our manufacturers.

I’ll be digging up even more of these key market indicators in the coming weeks. There are about five that I have my eyes on, and I will keep you posted.